Information Systems in Digital Age

CSIT217

MODULE-III
Decision……….

Definition:

A choice that you make about something after thinking about several possibilities:

dictionary.cambridge.org
Decision - Types
Based on the nature and objective of decision we can categorized
decision into:

Tactical and Strategic Decisions

• Tactical decisions are those which a manager makes over and over
again adhering to certain established rules, policies and procedures.
They are of repetitive nature and related to general functioning. 

• Strategic decisions on the other hand are relatively more difficult. They
influence the future of the business and involve the entire organization.
Decisions pertaining to objective of the business, capital expenditure,
plant layout, production etc., are examples of strategic decisions. ex-
amples of repetitive nature and related to general functioning.
Decision - Types

Based on the nature and objective of decision we can

categorized decision into:
Programmed and Non-programmed Decisions
• The programmed decisions are basically of a routine type for which
systematic procedures have been devised so that the problem may
not be treated as a unique case each time it crops up.

• The non-programmed decisions are complex and deserve a specific

treatment. It requires a thorough study of the causes of such a situa-
tion and after analyzing all factors a solution can be found through
problem solving process.
Decision - Types
Based on the nature and objective of decision we can
Categorized decision into:

Operational Decisions

• Operational decisions relate to day-to-day operations of the enterprise

having a short-term horizon and are always repeated
• Operational Decisions are taken at lower level of management
Decision - Types
Difference between Programmed and
Un-programmed Decisions

Programmed Decisions Un-Programmed Decisions

• Concerned with routine prob- • Concerned with Unique problems

• Non repetitive in nature
lems • Unstructured
• Repetitive in nature • Complex and have a long term impact
• Structured • Not used
• Simple and have a small impact • Not easily available
• Demands time and discretion
• Pre-established policies and pro- • Top Management
cedures are used
• Information regarding these
problems is readily available
• Consumes less time and efforts
• Lower Executives
Decision Making with Information
system
Decision Making Process..
Decision Making Process..
Awareness of the problem
• At this stage the decision maker becomes aware about a problem that is to be solved

Diagnose and stat the problem

• The decision maker understands and analyses the problem and the objective of the solution.

Develop the alternatives

• This stage involves collection of data regarding the problem and formulation of different alternate course of action.

Evaluate the alternative

• It of the evaluation of the various alternative on the basis of the feasibility of particular action, situation, resources,
time period in which the objective has to be achieved.
Select the best alternative
• After analyzing and evaluating the possible outcomes of each course of action the most suitable, feasible and prof -
itable option is selected
Implement and verify the decision
• This step involves implementing the decision and making sure that the selecting course of action meets the expected
outcomes.
Feedback
• Decision making is a continuous process hence a feedback from all the parties involved with implanting the decision is
taken
Problem solving
and
Decision Making
Problem solving
and
Decision Making
Decision Support System
Definition

A DSS is an interactive, flexi-

ble, and adaptable computer
based information system
that utilizes decision rules,
models, and model base Thus, a DSS supports complex
coupled with a comprehen- decision making and increases
sive database and the deci- its effectiveness.
sion maker’s own insights,
leading to specific, imple-
mentable decisions in solving
problems that would not be
amenable to management
science models.
DSS-Characteristics

It’s a management support system whose capabilities go beyond those of MIS

It is individual specific

Extensively uses databases

Helps decision makers to carry out “What if” analysis.

Has extensive querying capabilities

Is effective in providing assistance to solve semi-structured problems at all lev-

els.
DSS Subsystems
Data management subsystems:
• This holds the required data to be used in decision making. It provides the
facilities for organizing, storing and querying the data.

Model Management subsystem:

• A model in simple terms, presents the relationships between various pa-
rameters of the system. It gives a mathematical description of reality.

Knowledge management subsystem:

• It consists of rules that can constrain possible solution as well as alterna-
tive solutions and methods for evaluating them.

Dialogue management subsystem/ User Interface:

• It acts as the gateway for the user to communicate with the DSS. It pro-
vides necessary on-line context sensitive help to various kinds of users
DSS Categories..

Model Driven Knowledge Document Communication

Data Driven DSS:
DSS: Driven DSS: Driven DSS: Driven DSS

• A Data Driven • It includes sys- • It suggest or • It helps man- • It includes

DSS provides tems that use recommend ac- agers to gather, communica-
access to and accounting and tions to man- retrieve, clas- tion, collabora-
manipulation financial mod- agers. They use sify, and man- tion and deci-
of large data- els, representa- business rules age unstruc- sion support
bases of struc- tional model and knowledge tured docu- technologies.
tured data. It and optimiza- bases. ments, includ-
includes man- tion models. ing web pages.
agement re-
porting sys-
tems, data
warehousing
etc.
Executive Information System

Executive Information system is a type of Information system, designed to meet the

strategic information needs of top level executives.

The main objective or EiS (Executive Information Systems) is to provide in real

time representative information to the high-level management. to support strate-
gic activities such as goal setting, planning and forecasting, and also tracking per-
formance.

Another objective of these systems is to gather. analyze, and integrate internal and
external data into dynamic profiles of key performance indicators. Based on each
executive's information needs. EiS can access both historical and real-time data
through ad-hoc queries.
CHARACTERISTICS OF EIS
The definitions in the previous section highlight some of the key characteristics of executive
information systems. The characteristics/capabilities of executive information systems are:

Executive information systems are tailored to management style

of individual executive users.

Filters, compresses, and tracks critical

Provides drill-down capabilities to executives

Designed with managements critical success factors in mind

Status access, trend analysis, and exception reporting

CHARACTERISTICS OF EIS
The definitions in the previous section highlight some of the key characteristics of executive
information systems. The characteristics/capabilities of executive information systems are:

personalized analysis

Navigation of information

Provides access to and integrates internal and external data .i.e., aggregate (global)
information

User-friendly and requires minimal or no training to use

used directly by executives without intermediaries

Present graphical, tabular, and/or textual

Benefits Of EIS
The use of executive information systems by executives
Provides several benefits for them

Increases the quality of decision-making (i.e., fast decisions and actions)

Provides a competitive advantage

Meets the needs of executives

More comprehensive analysis

Greater confidence

Improved service (speeding up of the flow of information)

Benefits Of EIS
The use of executive information systems by executives
Provides several benefits for them

Changing of the business focus

Saves time for user

Facilitates the attainment of organizational objectives

Provides better control in organizations

Improves communications (increase in capacity and quality)

Finds causes of problems

 KNOWLEDGE KNOWLEDGE
AND
MANAGEMENT ENGINEERING
KNOWLEDGE MANAGEMENT

Knowledge management may simply be defined as doing what is needed to get

the most out to knowledge resources.

Knowledge Management is the process of gathering a firm’s collective exper-

tise wherever resides

KM caters to the critical issues of organizational adaptation, survival and com-

petences in the face of increasingly discontinuous environmental change.

Knowledge management is the classification, dissemination and categorization

of information and people throughout an organization.
KNOWLEDGE MANAGEMENT

The concept of Knowledge Management contains several integral

parts
• Using accessible knowledge from outside sources.
• Embedding and storing knowledge in business processes, prod-
ucts and services.
• Representing knowledge in database and documents.
• Promoting knowledge growth through the organization’s culture
and incentives.
• Transferring and sharing knowledge throughout the organization.
• Assessing the value of knowledge assets and impact on a regular
basis
KNOWLEDGE MANAGEMENT

KM is the process of capturing and making use of a firm’s collective

expertise

Anywhere in the business-on paper, in doc-

Or in people’s heads called Tacit
uments in database-called Explicit
Knowledge. Knowledge.
KNOWLEDGE MANAGEMENT
Ideal Knowledge Management
Knowledge Management Process

KM processes refer to the ways that an organization handles knowledge at vari-

ous stages of its life in an organization (KM cycle).
There are four main knowledge management processes, and each process
comprises two sub-processes:

Knowledge discov- Knowledge applica-

Knowledge capture Knowledge sharing
ery tion

Internalization
Combination

Socialization

Socialization
Externaliza-

Exchange

Routines 
Direction
tion
Knowledge Management Process

Knowledge discovery may be defined as the development

of new tacit or explicit knowledge from data and informa-
tion or from the synthesis of prior knowledge. 

New explicit knowledge is discovered

through combination, wherein the multi-
ple bodies of explicit knowledge (data
and/or information) are synthesized to
create new, more complex sets of explicit
knowledge
In the case of tacit knowledge, the inte-
gration of multiple streams for the cre-
ation of new knowledge occurs through
the mechanism of socialization 

Data mining techniques may be used to

Socialization is the synthesis of tacit
uncover new relationships among explicit
knowledge across individuals, usually
data that may be lead to create predic-
through joint activities rather than writ-
tive or categorization models that create
ten or verbal instructions.
new knowledge
Knowledge Management Process

Knowledge capture is the process by which knowl-

edge is converted from tacit to explicit form (residing
within people, artifacts or organizational entities) and
vice versa through the sub-processes
of externalization and internalization.
Internalization is the sub-
Externalization is the sub-
process through which workers
process through which an orga-
acquire tacit knowledge. It rep-
nization captures the tacit
resents the traditional notion of
knowledge its workers possess
learning. Knowledge capture
so that it can be documented,
can also be conducted outside
verbalized and shared.
an organization.
Knowledge Management Process

Knowledge sharing is the process through which explicit

or tacit knowledge is communicated to other individuals.
• Typical Examples of Knowledge Sharing:
• Writing books or research papers
• Delivering a lecture or making a speech or presentation
• Participating in a dialogue over coffee or lunch
• Participating in Communities of Practice
• Mentoring a new staff; shadowing an expert
Exchange is used to communicate or transfer explicit
knowledge among individuals, groups and organiza-
tions.
Knowledge Management Process

Knowledge application is when available knowl-

edge is used to make decisions and perform tasks
through direction and routines.
Direction refers to the
process through which the
Routines involve the utiliza-
individual possessing the
tion of knowledge embed-
knowledge directs the action
ded in procedures, rules,
of another individual without
norms and processes that
transferring to that individ-
guide future behavior.
ual the knowledge underly-
ing the direction.
KNOWLEDGE ENGINEERING

‘Knowledge engineering is
the process or developing
knowledge based systems in
any field, whether it be in the
public or private sector, in
commerce or in industry’
KNOWLEDGE ENGINEERING
Knowledge Engineering includes the process of
knowledge acquisition, knowledge representation,
software design and implementation.

To meet the objective of Use an appropriate

Acquire the knowledge
designing a KBS, the method for representing
from the expert to be
knowledge engineer will knowled.ge in a symbolic,
used in the system.
have to: processable form
KNOWLEDGE ENGINEERING

Types of Knowledge
Procedural knowl-
edge provides alter-
Meta-knowledge is
Declarative Knowl- native actions based
knowledge about
edge tells us facts on the use of facts to
knowledge. It helps
The knowledge engi- about things. For ex- obtain know ledge.
us understand how
neer will normally be ample, the state- For example an indi-
experts use knowl-
dealing with three ment. A light bulb vidual will normally
edge to make deci-
types of knowledge: requires electricity to cheek the amount of
sions. For example
shine is factually cor- water in a kettle be-
knowledge about
rect. fore turning it on: if
planes and trains
there is insufficient
might be useful when
water in the kettle,
planning a long.
then more will be
added.
Roles in knowledge-system development
Knowledge
provider

Knowledge Knowledge en-

manager gineer/analyst

Knowledge sys-
Project manager
tem developer

Knowledge user
Knowledge provider/specialist

“Traditional” expert

Person with extensive experience in an application domain

Can provide also plan for domain familiarization

• “Where would you advise a beginner to start?”

Inter-provider differences are common

Need to assure cooperation

Knowledge engineer

Specific kind of system analyst

Should avoid becoming an "expert"

Plays a liaison function between application domain and sys-

tem
Knowledge-system developer

Person that implements a knowledge system on a particular

target platform

Needs to have general design/implementation expertise

Needs to understand knowledge analysis

• But only on the “use”-level

Role is often played by knowledge engineer

Knowledge user
Primary users
• interact with the prospective system

Secondary users
• are affected indirectly by the system

Level of skill/knowledge is important factor

May need extensive interacting facilities

• explanation

His/her work is often affected by the system

• consider attitude / active tole
Project manager

Responsible for planning, scheduling and monitoring

development work

Liaises with client

Typically medium-size projects (4-6 people)

Profits from structured approach

Knowledge manager

Background role

Monitors organizational purpose of

• System(s) developed in a project
• Knowledge assets developed/refined

Initiates (follow-up) projects

Should play key role in reuse

May help in setting up the right project team

Roles in knowledge-system development
knowle dge
manage r

defines knowledge s trategy

initiates knowledge development projects
facilitates knowledge dis tribution

knowle dge
e ngine e r/
knowle dge elicits knowledge analyst
provide r/ from proje ct
spe cialist manage r
manages
elicits
requirements
from
validates
delivers
analys is models
to

KS manages
us es

knowle dge
use r

des igns &

implements
knowle dge
syste m de ve lope r
Knowledge Engineering Process

Acquisition of knowledge
• General knowledge or meta-knowledge
• From experts, books, documents, sensors, files

Knowledge representation
• Organized knowledge

Knowledge validation and verification

Inferences
• Software designed to pass statistical sample data to generalizations

Explanation and justification capabilities

Knowledge Engineering Process
Application of KBS

Knowledge Application Systems support the process through

which some individuals utilize knowledge possessed by other indi-
viduals without actually acquiring, or learning, that knowledge.

Knowledge application technologies, which support direction and

routines includes:

Fault diagnosis
Decision sup- Advisor sys- (or trou- Help desk sys-
Expert systems
port systems tems bleshooting) tem
systems
Artificial intelligence

Artificial intelligence (AI) is the ability of a

computer program or a machine to think like
humans do.
Artificial Intelligence..

The automation The field of study The are of creat-

of activities that that seeks to ex- ing machines that
we associate with plain and emulate performs func-
human thinking, intelligent behav- tions that require
activities such as ior in terms of intelligence when
decision, problem computational performed by
solving. Learning. processes. people.
Artificial Intelligence- Goals

Systems Systems
that think that act
like hu- like hu-
mans mans

Systems Systems
that think that act
rationally rationally
 Disrupting Industries

Financial Services

Retail

Automotive

Healthcare

HR and Recruitment
Applications of AI

Deep Blue- A chess-Playing computer beat Garry Kasporov in1996

Fuzzy logic- A technique for reasoning under uncertainty. A type of

logic that recognizes more than simple true and false values.

Expert system- The primary goal of expert systems research is to

make expertise available to decision makers and technicians.

Neural networks- Neural nets are used in bioinformatics to map

data and make predictions.

Machine vision- It is a computer that makes decisions based on the

analysis of digital images.
Applications of AI
Optical Character recognition- It can translate arbitrary typewritten script into
optical character recognition is a method of recognizing text that has been pho-
tographical scanned into computer.

Handwritten recognition- It is used in millions of personal digital assistants.

Speech recognition- Speech recognition is the ability of a computer system to

respond accurately to verbal commands.

Computer algebra systems

Computer vision systems

Domains- AI
The domain of AI is classified into Formal tasks, Mundane
tasks, and Expert task

Mundane (Ordi-
Formal Tasks Formal Tasks
nary) Tasks

Engineering
Natural Computer Financial
Mathemat- Fault Find-
Language Vision Analysis,
ics Geome- Verification ing Manu-
Processing, Speech, Medical Di-
try Logic facturing
Robotics Voice agnosis
Monitoring
Expert System

Feigenbaum, defined an expert sys-

tem as “an intelligent computer
program that uses knowledge and
inference procedures to solve prob-
lems that are difficult enough to re-
quire significant human expertise
for their solution.
Expert System

An expert system solves problems in a narrow domain of

expertise and cannot be a general problem solver.
• For example. An expert system should not attempt to
solve problems in a very broad domain, such as “the medi-
cal domain,” but instead it would address specific subareas
of the medical domain. This is demonstrated by MYCIN
and Internist which are expert systems for diagnosing in-
fectious blood diseases and internal medicine problems re-
spectively.
MYCIN
MYCIN
The Consultation Program is the core of the system; it interacts with the physi-
cian to obtain information about the patient, generating diagnoses and therapy
recommendations.

The Explanation Program provides explanations and justifications for the

program’s actions.

The Knowledge-Acquisition Program is used by experts to update the

system’s knowledge base.
MYCIN

IF the infection is pimary-bacteremia

AND the site of the culture is one of the sterile sites

AND the suspected portal of entry is the gastrointestinal tract

THEN there is suggestive evidence (0.7) that infection is bacteroid.

• The 0.7 is roughly the certainty that the conclusion will be true given the evi-
dence. If the evidence is uncertain the certainties of the bits of evidence will be
combined with the certainty of the rule to give the certainty of the conclusion.
Expert System- Advantages
The Expert system is a repository of valuable information.

The expert system can be indispensible when human expertise is not accessible.

Expert systems could be more efficient and cost effective than human systems.

It crosses the local boundary to provide global knowledge.

A flexible, adaptable expert system can grow modularly and be constantly kept up to
date.

It can be used to train future human experts

It will readily explain the WHY and HOW of its conclusions and predictions. This adds to
system credibility and user friendliness.

It is helpful in high employee turnover and low human performance situation.

It is very useful developing countries where human expertise is rare and expensive.
Expert System- Drawbacks

An expert system can’t reason on the basis of a human “gut feelings” of intu-
ition, or even of common sense.

An expert system is confined to a restricted domain of expertise; it can’t eas-

ily integrate expertise from other domains, not it can generalize reliably.

The learning capability is not as good as the human experts.

The knowledge in an expert system is highly dependent upon the human ex-
pert expressing and articulating knowledge in the form that can be used in a
knowledge base.
 Suitability Criteria for Expert System:
Domain: Expertise: Complexity: Structure: Availability:

The solution
Solutions to Solution of An expert ex-
process must
the problem the problem is ists who is ar-
be able to
The domain, require the ef - a complex ticulate and
cope with ill-
or subject forts of an ex- task that re- cooperative,
structured,
area, of the pert. That is, a quires logical and who has
uncontained,
problem is body of inference pro- the support of
missing, and
relatively knowledge, cessing, which the manage-
conflicting
small and lim- techniques, would not be ment and end
data and a
ited to a well and intuition is handled as users involved
problem situa-
defined prob- needed that well by con- in the devel-
tion that
lem area. only a few ventional in- opment of the
change with
people pos- formation proposed sys-
the passage of
sess. processing. tem.
time.